find the sum borrowed by Rohit from a bank on compound interest of 5%per year to be calculated annually if he had to pay back RS 26,460 after 2year
Answers
Answer:
The sum borrowed by Rohit from the bank was Rs 24,000, and with the annual interest rate of 5% compounded annually, the interest for two years amounts to Rs 2,460.
Explanation:
We can use the formula for compound interest to calculate the sum borrowed by Rohit from the bank:
A = P(1 + r/n)^(nt)
where A is the amount at the end of the time period, P is the principal amount (or sum borrowed), r is the annual interest rate (as a decimal), n is the number of times the interest is compounded per year, and t is the time period in years.
In this case, Rohit borrowed a sum of money and had to pay back Rs 26,460 after 2 years at an annual interest rate of 5%, compounded annually. We can set up the equation as follows:
26,460 = P(1 + 0.05/1)^(1 x 2)
Simplifying the right-hand side of the equation:
26,460 = P(1.05)^2
26,460 = P(1.1025)
P = 26,460/1.1025
P = 24,000
To know more about the concept please go through the links:
https://brainly.in/question/35804974
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